Kmart Australia
| Company type | Subsidiary |
|---|---|
| Industry | Retail |
| Founded | 1968 |
| Headquarters | Mulgrave, Melbourne , Australia |
Area served | Australia and New Zealand |
Key people | Guy Russo (former CEO) |
| Products | Department store goods including homewares, clothing, toys, and more |
| Parent | Wesfarmers |
Kmart Australia Limited (commonly known as Kmart, Kmart Australia, and Kmart New Zealand) is a prominent Australian department store chain owned by the Kmart Group, a division within Wesfarmers.
The retailer operates 325 locations throughout Australia and New Zealand, with its corporate headquarters situated in Mulgrave, Melbourne. Kmart forms part of the Kmart Group alongside Target Australia, both subsidiaries of the Australian conglomerate Wesfarmers.
History
Kmart Australia Limited originated as a joint venture between G.J Coles & Coy Limited and the American company S.S. Kresge Company, the proprietor of Kmart USA. Ownership was split with Kresge holding 51% and Coles owning 49%, leading to the launch of Australian Kmart stores in 1968.
The inaugural store commenced operations on 30 April 1969 in Burwood East, Melbourne. Approximately 40,000 shoppers visited on opening day, generating sales exceeding $97,000. Due to the overwhelming crowd, the store closed its doors just 45 minutes after opening for safety reasons. The opening ceremony was conducted by Mrs HB Cunningham, spouse of S.S. Kresge’s president. The original location was redeveloped into the Burwood One shopping centre in 2010, where Kmart continues to maintain a presence.
1978–2006: Coles era
In 1978, following its renaming to "Kmart Corporation" in 1977, Kresge exchanged its 51% stake in Kmart Australia for a 20% shareholding in G.J. Coles & Coy (later known as Coles Myer). By November 1994, Kmart Corporation had fully divested its 21.5% interest in Coles Myer.
Kmart expanded into New Zealand in 1988 by opening a store in Henderson, Auckland.
In 2006, Coles Group announced intentions to merge Kmart, Bi-Lo, and Coles liquor brands into larger-format retail outlets. The initial rebranding was scheduled for 2007, aiming to convert around 40 stores into Coles Superstores—primarily former "Super K" sites that had previously been divided into separate Coles and Kmart stores. However, by March 2007 these plans were postponed pending the sale of Coles Group to Wesfarmers. In August 2007, Wesfarmers confirmed it would not proceed with the superstore concept.
In July 2007, Wesfarmers acquired Coles Group for A$22 billion.
2007–present: Wesfarmers ownership
Following the acquisition, Wesfarmers considered selling or converting some Kmart outlets into Target stores in August 2007. After completing the purchase of Coles Group in November 2007, Wesfarmers opted to retain Kmart and committed an investment of A$300 million over five years.
After experiencing disappointing results in 2009, Kmart rebounded strongly during the 2010 financial year with revenues reaching A$4.02 billion and EBIT increasing by 74% to A$190 million. Under CEO Guy Russo—formerly of McDonald's—the company shifted focus from discount pricing and established name brands towards lower prices, curated product ranges including private labels, and fashionable items. Store layouts were revamped around lifestyle themes such as “kitchen” rather than traditional departments, and checkouts were relocated to central store locations, eliciting mixed reactions from customers.
On 15 November 2012, the first multi-level Kmart in Australia opened at Adelaide’s Rundle Mall. By August 2015, Kmart operated a total of 214 stores across Australia and an additional 20 in New Zealand, introducing self-service checkouts nationwide that same year.
In August 2017, Wesfarmers acquired the Australian and New Zealand rights to the Kmart brand for $100 million, terminating a licensing agreement previously held with Sears.
In 2018, Kmart discontinued sales of DVDs, CDs, video games, and related electronics to focus on expanding its range of children’s products and homewares. This strategic shift contributed to a reduction in profits from $415 million in 2017 to $385 million in 2018.
Between 2020 and 2021, amid declining sales and profitability at Target stores, the Kmart Group converted 92 Target outlets into Kmart formats while closing others. Target Country stores were rebranded as K-Hubs.
In July 2023, Wesfarmers announced a restructuring initiative merging numerous back-office operations of both Kmart and Target under a unified 'two brands, one business' approach.
Anko
Between October 2018 and mid-2020, Kmart in the United States operated a discount department and online outlet featuring Anko-branded merchandise. In the Philippines, the initial Anko store debuted at Robinsons Galleria in 2023, followed by a second location at Alabang Town Center in May 2025, coinciding with the introduction of its mobile application and the Anko Club loyalty initiative. Unlike conventional points-based programs, the Anko Club provides members with access to exclusive events, VIP privileges, and community-driven challenges. Brand ambassador Anne Curtis participated in the launch event, supporting a strategic effort to grow Anko’s footprint across Southeast Asia. A third store is planned to open at Trinoma in Quezon City by July 2025.
Kmart
Kmart outlets offer products organized into three main segments: 'home' (including kitchenware, bedding, furniture, pet supplies, photo development services, camping and fishing equipment, sporting goods, small appliances, storage solutions, stationery, books, gardening tools, automotive accessories, lighting fixtures, hardware items, and luggage), 'clothing' (apparel, footwear, and cosmetics), and 'kids' (children’s entertainment products, toys, confectionery, greeting cards, and party supplies). Beginning in 2013, stores underwent redesigns that eliminated garden plant sections and reduced back-of-store space while enlarging overall floor area and raising display heights. This redesign fostered a more department store-like atmosphere by replacing multiple front-of-store checkouts with centralized payment stations.
Kmart 24 Hour
Kmart 24 Hour locations maintain continuous operations except during certain public holidays or special events. These stores closely resemble standard Kmart outlets but are distinguished by a red "24 Hours" emblem positioned alongside the primary branding.
K Hub
K Hub represents smaller rural-format stores that have replaced Target Country outlets. These stores carry a limited selection of Kmart merchandise and offer services such as 'click & collect' along with returns for both Kmart and Target products.
ColMart
During the 1980s in Whyalla, South Australia, ColMart functioned as a combined Coles New World supermarket and variety store.
Girl Xpress
Girl Xpress was a fashion retailer aimed at young urban women, tested as a concept store in Burwood East, Victoria starting in 2005 but later discontinued. The brand continues as an internal Kmart label.
Holly's Restaurant
Throughout the 1980s and 1990s, Holly's operated dining facilities within all Kmart stores. These restaurants were gradually phased out from the late 1990s onward, with the final location closing in Horsham, Victoria on 25 June 2010.
Kmart Clearance Centre
A clearance centre trial ran briefly at Ringwood, Victoria between November 2006 and June 2007.
Kmart Food
Kmart Food supermarkets were established adjacent to Kmart stores and expanded to 21 sites by June 1975. During the 1976 financial year, these were rebranded as Coles New World supermarkets.
Kmart Garden Supercentre
Operating from 1999 until 2007, these standalone "big box" outlets specialized in gardening supplies and outdoor furniture across six locations in Victoria, Queensland, and New South Wales. In 2007 most were converted into Flower Power Garden Centres. By 2013 all former Kmart nursery stores except Campbellfield had either closed or downsized due to strategic realignments. The Campbellfield location ceased operations in 2016 and was replaced by an Aldi store in August 2017.
Kmart Photos
Originally, Kmart Photos handled the development of analog film and printed photographs, also catering to Hewlett-Packard's Snapfish customers for online order pickups. In 2009, following the conclusion of a three-decade partnership with Kodak Australia, Kmart formed an alliance with Hewlett-Packard. However, in early 2014, Kmart reverted to using a Kodak-powered Minilab system. The Kmart Photos brand has since been phased out.
Kmart Tyre and Auto Service
Based in Castle Hill, Sydney, Kmart Tyre and Auto Service—now operating under the name MyCar Tyre and Auto—managed a chain focused on automotive parts, tyre services, vehicle inspections, and motor insurance. Positioned mostly next to Kmart stores, the network expanded in 2006 by converting several Coles Express service stations previously part of Shell Autoserv and AutoCare. By August 2015, the chain operated 246 locations nationwide, increasing to 260 MyCar Tyre & Auto outlets by November 2023. In August 2018, Wesfarmers agreed to sell this business to Continental AG for $350 million. After the acquisition, all outlets were rebranded as MyCar in September 2019, ending their connection with the Kmart brand.
Super Kmart
The Super Kmart hypermarket concept debuted during the 1983 financial year with four stores located in New South Wales, Western Australia, and Victoria. These stores merged a Kmart discount department store with a supermarket within roughly 9,000 square metres of retail area. By 1990, the format had grown to 34 stores but was eventually discontinued due to underperformance and overlapping administrative expenses. Subsequently, these locations were separated into individual Kmart discount stores and Coles New World supermarkets; however, some took several years to finalize this transition.
Revenue
Kmart Australia reported revenue of A$11.107 billion for the fiscal year 2023–24, marking an increase from A$10.635 billion recorded in the previous year.
Anko
Anko serves as Kmart Australia's private label, launched in 2019 to celebrate the company’s 50th anniversary and developed from the earlier “&Co” brand. Since 2008, Anko has embodied the “A New Kind Of” philosophy and now represents 85% of products available in Kmart outlets. It holds leading market shares across home goods, toys, menswear, womenswear, and childrenswear categories within Australia.
In 2024, Target Australia began offering Anko merchandise. On the international front, Anko products are distributed through department stores in Thailand, Indonesia, Canada, as well as online retailers such as Amazon and Flipkart in India. In March 2023, Zellers obtained exclusive Canadian distribution rights for Anko; later in November 2024, Kmart inaugurated its first dedicated Anko store in Asia (Philippines).
Known for affordable prices, modern designs, and frequent product refreshes, Anko has fostered an online community of DIY home renovators and decorators—primarily suburban women—who share creative “Kmart hacks.” This phenomenon parallels the well-known “IKEA hacks” movement and has received extensive media attention, strengthening Kmart’s image as a provider of fashionable yet budget-friendly items.
Kmart Wishing Tree Appeal
Since 1988, Kmart, in collaboration with The Salvation Army, has conducted the annual Christmas gift initiative known as the Kmart Wishing Tree Appeal. This program was founded by Eve Mitchell at the Noarlunga Kmart location and leverages Kmart's extensive store network to serve as donation hubs, aiding charitable organizations during the holiday season. By its 35th year in 2022, the appeal had amassed more than $5.6 million and distributed 10 million presents to individuals in need. In 2024, Target became a participant in this charitable effort.
See also
- Kmart, managed by Transformco.
- Big W, a primary rival.
- Target, affiliated with the Kmart Group.